Changes Maine’s income tax scheme starting in 2026, including an increase to top income tax rate from 7.15% to 8.95%. This increase would bump us from the 11th highest top marginal income tax to 8th highest.
Description: Maine already has some of the highest income taxes in the country. This bill would bump us from the 11th-highest top marginal tax rate in the nation to the 8th-highest by adding a new top tax rate of 8.95% starting in 2026.
Supporters say the bill makes the tax system fairer by spreading out the rates across more brackets. But here’s the problem: high tax rates on businesses and successful people don’t just hurt the wealthy, they hurt everyone. When business owners and entrepreneurs pay more, they have less money to hire workers, raise wages, or invest in their communities. Many simply leave for states with lower taxes, taking jobs and economic growth with them.
Maine already struggles to keep young people and working families from moving away. Adding a near-9% top income tax rate sends the wrong message to anyone thinking about starting a business or building a career here. Lead Maine believes Maine families are better served by keeping more of what they earn, and by a state government that spends wisely rather than reaching deeper into people’s paychecks.